GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill by segment follow:


	January 1, 2019		Additions		Goodwill reclassified to held for sale		Translation		December 31, 2019		Additions		Goodwill reclassified to held for sale		Translation		December 31, 2020
Electrical Americas	$	6,819	$	8	$	(470)	$	(5)	$	6,352	$	97	$	—	$	7	$	6,456
Electrical Global	3,942		155		—		9		4,106		7		—		182		4,295
Hydraulics	931		—		—		(10)		921		—		(907)		(14)		—
Aerospace	1,264		442		—		—		1,706		15		—		56		1,777
Vehicle	292		—		—		(1)		291		—		—		2		293
eMobility	80		—		—		—		80		—		—		2		82
Total	$	13,328	$	605	$	(470)	$	(7)	$	13,456	$	119	$	(907)	$	235	$	12,903

During the first quarter of 2020, Eaton re-segmented certain reportable operating segments due to a reorganization of the Company's businesses. The Company used the relative fair value method to reallocate goodwill to the associated reporting units impacted by the reorganization resulting in goodwill of $6.4 billion and $4.0 billion being allocated to the Electrical Americas and Electrical Global reportable segments, respectively. The Company’s reporting units are equivalent to the reportable operating segments, except for the Aerospace segment which has two reporting units.

The fair values of the Electrical Americas and Electrical Global reportable segments were estimated based on a discounted cash flow model. The model includes estimates of future cash flows, future growth rates, terminal value amounts, and the applicable weighted-average cost of capital used to discount those estimated cash flows. The weighted-average cost of capital is an estimate of the overall after-tax rate of return required by equity and debt market holders of a business enterprise. These analyses require the exercise of judgments, including judgments about appropriate discount rates, perpetual growth rates, revenue growth, and margin assumptions.

The fair value of the Hydraulics reportable segment was estimated based on a combination of the price to be paid to Eaton by Danfoss A/S and a discounted cash flow model. See Note 2 for additional information about the allocation of goodwill to the Hydraulics reportable segment.

The Filtration and Golf Grip businesses previously included in the Hydraulics reportable segment, and the electrical aerospace connectors business previously included in the Electrical Products segment, have been added to the Aerospace segment as part of the reorganization.

The 2020 additions to goodwill primarily relate to the anticipated synergies of acquiring Power Distribution, Inc. The 2019 additions to goodwill relate to the anticipated synergies of acquiring Souriau-Sunbank, Ulusoy Elektrik and ISG.

A summary of other intangible assets follows:


	December 31
	2020				2019
	Historical cost		Accumulated amortization		Historical cost		Accumulated amortization
Intangible assets not subject to amortization
Trademarks	$	1,382			$	1,516

Intangible assets subject to amortization
Customer relationships	$	3,415	$	1,795	$	3,260	$	1,634
Patents and technology	1,428		773		1,542		704
Trademarks	970		505		1,057		457
Other	91		38		92		34
Total intangible assets subject to amortization	$	5,904	$	3,111	$	5,951	$	2,829

Amortization expense related to intangible assets subject to amortization in 2020, and estimated amortization expense for each of the next five years, follows:


2020	$	342
2021	339
2022	331
2023	287
2024	277
2025	273